New Jersey bans algorithmic rent-setting after collusion lawsuit
New Jersey Governor Mikie Sherrill signed legislation banning landlords from using algorithms to set rents based on competitors' pricing data, a practice state officials said amounted to "collusion by algorithm." The law comes about a year after the state's Attorney General sued RealPage and major landlords for allegedly using rent-setting software to inflate rents in violation of antitrust and consumer protection laws.
What happened
Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act on July 20, 2026, barring landlords from using algorithms to analyze competitors' pricing and vacancy data to set rent levels.
The law prohibits landlords from sharing sensitive pricing data that feeds these algorithms and bans price-fixing agreements between landlords. It takes effect in July 2027.
Reported impact
Governor Sherrill stated that algorithmic rent-setting has allowed competing landlords to effectively coordinate rent increases, describing the practice as 'collusion by algorithm.' State officials said the law aims to stop 'relentless price hikes' and address housing affordability.
Index analysis
The New Jersey Attorney General's Office filed a lawsuit about one year prior against RealPage and nearly a dozen of the state's largest landlords, alleging they used the software to inflate rents in violation of antitrust and consumer protection laws. The lawsuit remains ongoing.
Governance controls
Some municipalities including Hoboken and Jersey City already had laws in place banning landlords from using algorithmic rent-setting programs. New Jersey joins a small cohort of other states that have passed such legislation, including New York and California.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.